|
Navigation: Previous Page | Contents | Next Page
Farm Household
Support Bill 2014
Farm Household
Support (Consequential and Transitional Provisions) Bill 2014
Portfolio:
Agriculture
Introduced:
House of Representatives, 6 March 2014
1.96
The Farm
Household Support Bill 2014 (the main bill) seeks to introduce the Farm
Household Allowance (FHA), a new income support payment for farmers and their
partners who are in financial hardship. It replaces the existing Exceptional
Circumstances Relief Payment (ECRP), which is only available to farmers in
regions experiencing exceptional circumstances, such as drought. The FHA will
provide up to three cumulative years of income support for farmers and their
partners based on individual need without the need for a climatic trigger. Its
purpose is to support farm families in hardship and help farmers prepare for
and manage business risks, including drought. According to the explanatory
memorandum, the bill aligns the proposed new income support payment with social
security laws where possible.[1]
1.97
Under the main
bill, for a person to qualify for the payment, they must satisfy certain
participation requirements, including:
- Meeting a means
test, composed of an asset and income test. The bill proposes an assets
test that is higher than mainstream asset limits in recognition of the fact
that farm assets are relatively illiquid compared with other types of business
assets.
- Entering into,
and complying with, a financial improvement agreement. Such agreements
will require the person to undertake approved activities such as education,
training, or off-farm employment, designed to improve their capacity for
self-reliance.
- Having a farm
financial assessment conducted to evaluate options to improve the person's
financial situation and inform the development of the financial improvement
agreement.
1.98
The main bill
proposes activity and farm financial assessment supplements for the purpose of
funding partially or wholly the above requirements. It also provides ancillary
benefits where certain requirements are met.[2]
1.99
The Farm
Household Support (Consequential and Transitional Provisions) Bill 2014 (consequentials
bill) repeals the Farm Household Support Act 1992, which currently
provides for the ECRP and makes necessary consequential amendments. One such
amendment has the effect of continuing the current exemption from the Age
Discrimination Act 2004 in relation to things done in direct compliance
with the 1992 Act in relation to the proposed new Act. This exemption is limited
to provisions which allow for differential treatment based on age (for example,
the requirement that a person must be 16 years or above to receive the FHA).
1.100
The bills are
accompanied by self-contained detailed statements of compatibility. The statement
accompanying the main bill states that the bill engages the right to social
security, the right to an adequate standard of living, the right to health,
protection of the family, the right to work and rights in work, the right to
privacy and the right to equality and non-discrimination. The statement
accompanying the consequentials bill states that the bill engages the right to
social security, the right to an adequate standard of living, the right to
health, the right to work and rights in work, and the right to equality and
non-discrimination. Both statements of compatibility conclude that the bills
are compatible with human rights, in that to the extent that they may limit
rights, the limitations are reasonable, necessary and proportionate to achieve
legitimate aims.
1.101
The committee
considers that the statements of compatibility contain a detailed and thorough
examination of the rights implications of the bills, including sufficient
justification for any limitations on rights, with one exception set out below.
1.102
The committee
notes that the main bill requires entry into, and compliance with, a financial
improvement agreement in order for a person to receive FHA. Accordingly, a
failure to comply with certain activity requirements set out in the agreement
may result in the ceasing of payments. The right to social security encompasses
the right to access and maintain benefits to secure protection from,
among other things, lack of work-related income. The statement of compatibility
does not address how the imposition of certain activity requirements is consistent
with the right to social security, particularly where a person may have a
legitimate reason for not being able to meet the requirements at a given time.
However, the committee notes that Division 5 of Part 2 of the main bill sets
out the conditions under which an individual can be temporarily exempt from the
activity test, including, for example, where it is unreasonable to expect the
person to satisfy the activity test. The committee considers that it would have
been helpful if the statement of compatibility had addressed this issue.
1.103 In light
of the information set out in the statement of compatibility, and the above
view, the committee considers that the bills do not appear to give rise to
human rights concerns.
1.104 The
committee recommends the government monitor the operation and impact of the
measures. The committee will seek to ensure that the measures are operating as
intended in 12 months' time.
Navigation: Previous Page | Contents | Next Page
Top
|